Solve the Problem by Writing a Variation Model

question 132

Short Answer

Solve the problem by writing a variation model. The costs of a trucking company vary jointly as the number of trucks in service and the number of hours they are used. When 3 trucks are used for 7 hours each, the costs are $1,533. Find the costs of using 10 trucks, each for 13 hours. $ __________

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Definitions:

Fixed Costs

Fixed expenses that are unaffected by the amount of goods produced or sold, for example, rent, salaries, and insurance payments.

Profit

Profit is the financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Operating Income

Income generated from a company's regular business operations, excluding one-time events and expenses.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.